The New Brunswick Department of Natural Resources (DNR) has issued a Request for Proposals (RFP) for the exploration of a development in the Millstream Potash Deposit. The area for development is approximately 10,100 hectares some five to ten kilometers west of Sussex in south central New Brunswick. The site is about two kilometers from a rail link, and about 70 kilometers from the Port of St. John.
The detailed RFP, issued April 6 and available on the New Brunswick Web site, www.gnb.ca, said that Millstream is the fourth major potash discovery in the province, with two having already been developed and the third currently under construction by Potash Corp. of Saskatchewan Inc. The RFP noted that the Millstream discovery was made 38 years ago, and that in addition to potash, there are potential magnesium resources. The area was explored by BP Resources Canada Ltd. in the 1980s.
The RFP is asking for proposals by June 6. The DNR plans to inform each proponent of its decision by Aug. 6, 2011. New Brunswick is looking for serious proposals and has outlined its criteria, including: necessary capability and commitment to undertake the proposed work that will provide the best outcome for the province; sincere commitment, with an experienced team and dedicated resources to undertake the work; significant financial capability; a strategy and access to the expertise necessary for potential mine development and the sales of the potash and related minerals; and the offer of the maximum economic benefit that can be realized from the deposit.
Proponents must also submit a certified check in an amount representing 5 percent of the estimated value of the proposed exploration program to be undertaken. Asked if there was a minimum amount for the check, the province told Green Markets that the figure is subjective. However, it did note that there is a commitment to drill a minimum of four boreholes.
New Brunswick would enter into a three-year agreement, with the successful company having two years to complete an exploration program.
If mining eventually takes place, a minimum royalty based on production and an opportunity to share in the profits realized from a mining operation will also be required.